Integrity First:Dr. Joseph M. Grant, General Tommy

Franks,and the Deepwater Oilspill

James Campbell (Jim) Quick Professor of Leadership & Organizational Behavior

John and Judy Goolsby – Jacqualyn A. Fouse Endowed ChairThe University of Texas at Arlington, US

andLancaster University Management School, UK

Goolsby Ethics SeminarWednesday, 18 June2014

LUMS LT5 – 2pm to 3:30pm

Quick Overview

1. John Goolsby – ethics & integrity Integrity – Courage – Impact Character as a competitive advantage

2. Ethical Framework for Moral Reasoning3. Dr Joseph M. Grant

Adversity (twice) and on to triumph – no easy road

4. General Tommy Franks, US Army (Ret.) American Soldier – the citizen soldier

5. Deepwater Oilspill Easy to moralize, hard to reason morally

6. Self-Regulation and Enforcement7. Questions & Comments

John Goolsby ’64Integrity – Courage – Impact

A word from my sponsor…John Goolsby– Howard Hughes Company…– The Aviator– Ethical dilemmas…

Integrity first: Ethics for leaders and followersOrganizational Dynamics, 42/1, 1–7.2013 Goolsby 10th Anniversary Special EditionRecognized with The 2013-2014 Distinguished Professional Publication Award

Ethical Framework for Moral Reasoning

Intention Action/Behavior Consequence

Character Theory: Virtue-Ethics

Rule-Based Theory Consequential Theory

Three standards for evaluating right and wrong

Herbert J. Taylor…50th Rotary International Year President

Club Aluminum Company of Chicago– Took an 80% cut in pay…in the Depression!– Put in $6,100 of his money– …then he prayed!

The Four–Way Test…– 100 word guideline…became– 7 questions…became – 4 questions we know today– Character as a competitive advantage

Honor & IntegrityRick Lynch and Goolsby Cohort 9

Cadet Honor Code: “A cadet will not lie, cheat, steal, or tolerate those who do.”

Academy scandal of 1976 – – 150 cadets expelled, rolled back – 50 direct, 100 toleration clause– Did Rick Lynch ever lie, cheat, or steal?...well, yes

Confession…and forgiveness (cf., Cameron, 2007)

Self–examination, assessment, & correction

Joseph M. (Jody) Grant, Ph.D.

San Antonio, Texas – childhood adversity

Southern Methodist U – All American

Great Texas Banking Crash – late 1980s

Losing it all – or not

Wisdom and knowledge Courage…in the face of adversity

Emotional strengths and integrity

Temperance Humility, modesty, self–control

Transcendence Gratitude, hope, optimism

Character Strengths and VirtuesJody Grant

Texas Capital Bank (1998, 2003) Largest initial capitalization in US history

($80,000,000) Community Banker of the Year (2001) Entrepreneur of the Year (2002)

Leadership honors Horatio Alger Distinguished American (2010) Goolsby Distinguished Leader Medallion

(2014)

Recognitions & HonorsJody Grant

General Tommy Franks, AUS

Oklahoma to Midland, Texas – Laura Bush

University of Texas at Austin – not so good

U.S. Army – UT–A Dangerous neighborhood

– a world of adversity

Courage…in the face of adversity Bravery, valor, persistence, integrity

Justice…civic strengths Citizenship, teamwork, leadership

Humanity…interpersonal strengths Social, emotional intelligence

Temperance…humility, modesty

Character Strengths and Virtues

Tommy Franks

Recognitions & HonorsTommy Franks

Military awards and decorations DSM5, LOM4, Bronze Star/V4, Purple Heart3

Post-military awards and honors Knight Commander of the Order of the

British Empire Presidential Medal of Freedom (2004) Goolsby Distinguished Leader Medallion

(2004) Horatio Alger Distinguished American (2010)

Case of the BP Deepwater Oil Spill

Victor Isaias Gonzalez HernandezMcNair Research Intern

Study conducted Summer 2013

“Persons are not judge based on how they act in times of comfort, but based on how they react in times of crisis.”

– Joseph Karl Grant

20 April 2010 – before, during, after

Before:Dates prior to April

20th 2010

During:April 20th 2010 to

November 15th 2012

After:November 16th to

present time

April 20th 2010British Petroleum

Deep-waterHorizon Oil Spill

JohnBrowne

TonyHayward

TonyHayward

BobDudley

Bob Dudley

360–degree Review & Evaluation

BP GulfDeep-water

Oil Spill

Environmental

BP Annual Reports

Engineering Academic Journals

InternationalNews Articles Periodicals

DomesticNews Articles

Law Reviews

Ethical Standard – Immanuel Kant

Categorical Imperative“Act only on that maxim through which you can at the same time will that it should become a universal law.”

Practical Imperative“Act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as a means, but always at the same time as an end.”

Risk & Safety

“The pursuit of energy will always involve risk, so it is essential that safety remains front of the mind.”

– Carl-Henric Svanberg

Conclusion & Judgment about BP

The ethical judgment is inconclusive BP cannot act ethically, or unethically BP executives and employees can so act They acted both ethically and unethically

BP suffered from a culture in which… Leaders emphasized profits over safety, ethics

Culture is a leadership responsibility Douglas MacArthur at West Point (1919-22)

The Four-Way Test: Self-Regulation

First – Is it the truth ?

Second – Is it fair to all concerned Third – Will it build goodwill and

better friendships ?

Fourth – Will it be beneficial to all concerned ?

Limitations of Virtue Ethics

Character strengths/virtues not enough Lack of common understanding Individual fallibility and vulnerability Conflicts of interests among individuals

The problem of self–serving behavior Ethical dilemmas and close calls

Personal accountability and

organizational integrity

Codes of Conduct & Enforcement

Enforcement mechanisms…

pick up where self-control stops Explicit behavior-consequence links

Clear, explicit, unambiguous, consequential

The role of forgiveness & compassion Forgiveness does not mean condoning,

approving, or forgetting

External factors…nintended consequences

Questions and Comments